CIMB Group is laying the groundwork to issue tokenised bonds and Islamic sukuk in Malaysia, positioning itself early as regulators move to modernise capital markets through the use of distributed-ledger technology.
The bank said it will develop tokenised financial services covering assets, settlement and payment infrastructure under the Securities Commission Malaysia’s industry pilot programme on securities tokenisation, with initiatives to be rolled out in phases.
CIMB is also engaging Bank Negara Malaysia to seek admission into the central bank’s Digital Asset Innovation Hub.
As an initial step, CIMB has committed to a tokenised sukuk issuance pilot led by Khazanah Nasional Berhad in collaboration with the Securities Commission Malaysia.
The bank said it will support the programme across structuring, execution, custody arrangements, and lifecycle servicing, with the pilot expected to run through 2026.
CIMB said it has issued about RM40 billion of conventional bonds and sukuk in Malaysia over the past three years.
As digital asset capabilities mature, it plans to issue part of its future funding in tokenised bond and sukuk formats, signalling a gradual rather than wholesale shift away from traditional issuance.
Beyond capital markets, the group is developing capabilities to support tokenised deposits that could be used to settle tokenised securities.
CIMB said such deposits could reduce manual processing and reconciliation while improving transparency and operational efficiency across payments and wholesale banking.
The bank said it is working closely with both the Securities Commission and Bank Negara Malaysia to ensure its tokenisation initiatives align with regulatory expectations.
Any product rollout will remain subject to legal requirements, internal approvals and technology readiness.
Malaysia’s tokenisation push remains firmly in pilot mode, with regulators favouring controlled experimentation over rapid deployment.
For banks such as CIMB, the challenge will be converting proof-of-concept projects into scalable issuance without increasing legal, custody and operational complexity.